The 2010 budget proposal for the FAA released earlier this month by the White House makes it obvious that President Obama wants a fundamental change in funding in FY 2011 by dramatically reducing General Fund support for aviation in America. The Administration proposal for 2011 envisions $9.6 billion coming from user fees–up more than $2 billion from the initial estimate earlier this year. That figure rises to $11 billion by 2014.
The Government Accountability Office (GAO) warned last month that the excise taxes that feed the Airport and Airway Trust Fund have been lower than previously forecast, while estimates of future revenues have declined because of a drop in passenger traffic, fares and fuel consumption. Meanwhile, the uncommitted balance in the trust fund has been decreasing since Fiscal Year 2001.
In addition to the costs of acquisition, prospective buyers must consider the costs–especially insurance and taxes–they will incur once they own the aircraft. To that end, aircraft management contracts with well thought-out insurance provisions should be integral to the aircraft acquisition process, said Bill Kingsley, an account executive with the Addison, Texas-based brokerage AirSure.
The Government Accountability Office (GAO) warned this week that the excise taxes that feed the Airport and Airway Trust Fund have been lower than previously forecast, while estimates of future revenues have declined because of a drop in passenger traffic, fares and fuel consumption. Moreover, the uncommitted balance in the trust fund has been decreasing since Fiscal Year 2001.
Visitors to the Conklin & de Decker display (Booth No. 3323) during Heli-Expo’09 can receive a 20-percent discount on some of the company’s most popular products, including the Aircraft Cost Evaluator, the Aircraft Performance Comparator, Life Cycle Cost and the State Tax Guide for General Aviation. The Massachusetts-based company released the 2009 tax guide earlier this month.
Several U.S. operators of business aircraft report that they have received invoices this week from NavCanada for a retroactive 5-percent goods and services tax (GST) on air navigation service charges. The Canadian Revenue Authority (CRA) has assessed the tax to NavCanada, which is attempting to recover payments from aircraft operators who have flown in its airspace in the last five years, the length of the statute of limitations.
The governor of Missouri has signed a bill eliminating sales tax on aircraft repair parts, aligning the state with neighboring states having similar laws. Before passing the law, Missouri exempted aircraft used to carry people and property, but now the tax exemption applies to all materials, replacement parts and equipment used for modification, repair, replacement and maintenance of aircraft, powerplants and accessories from Jan.
In some respects Russia’s development has followed a pattern familiar to Westerners, but that is not true for its business aviation industry. While Russian billionaires show off their huge yachts in the most expensive and trendy places in the world, buy A380s for personal use, haunt French ski resorts and buy islands off Dubai, some of the nation’s laws prevent wealthy individuals from reaping the benefits of business aircraft.
Business aircraft owners who want to move up have the option to engage in a “like-kind exchange” that could save thousands of dollars in capital gains taxes, according to Tonya Fritts, vice president and relationship manager for North Carolina-based Wachovia Exchange Services (Booth No. 3769).
Value Added Tax (VAT) and import duties for aircraft currently stand at zero percent in Denmark. This allows international operators to avoid tax by basing their aircraft in Denmark. However, zero-rated VAT is in contradiction with European law and pressure is mounting on Danish legislators to adjust their taxes upward.